IP-Enabled Services   Voice over Internet Protocol (VoIP), is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line. Some VoIP services may only allow you to call other people using the same service, but others may allow you to call anyone who has a telephone number - including local, long distance, mobile, and international numbers. Also, while some VoIP services only work over your computer or a special VoIP phone, other services allow you to use a traditional phone connected to a VoIP adapter.       Frequently Asked Questions To find more information on (VoIP) read below according to the American government information. This services is getting more propellor in EU and in Greece. Aspects of these considerations may change with new developments in internet technology. You should always check with the VoIP service provider you choose to confirm any advantages and limitations to their service. Frequently Asked Questions back to top How VoIP / Internet Voice Works VoIP services convert your voice into a digital signal that travels over the Internet. If you are calling a regular phone number, the signal is converted to a regular telephone signal before it reaches the destination. VoIP can allow you to make a call directly from a computer, a special VoIP phone, or a traditional phone connected to a special adapter. In addition, wireless "hot spots" in locations such as airports, parks, and cafes allow you to connect to the Internet and may enable you to use VoIP service wirelessly.       What Kind of Equipment Do I Need? A broadband (high speed Internet) connection is required. This can be through a cable modem, or high speed services such as DSL or a local area network. A computer, adaptor, or specialized phone is required. Some VoIP services only work over your computer or a special VoIP phone, while other services allow you to use a traditional phone connected to a VoIP adapter. If you use your computer, you will need some software and an inexpensive microphone. Special VoIP phones plug directly into your broadband connection and operate largely like a traditional telephone. If you use a telephone with a VoIP adapter, you'll be able to dial just as you always have, and the service provider may also provide a dial tone.       Is there a difference between making a Local Call and a Long Distance Call? Some VoIP providers offer their services for free, normally only for calls to other subscribers to the service. Your VoIP provider may permit you to select an area code different from the area in which you live. It also means that people who call you may incur long distance charges depending on their area code and service. Some VoIP providers charge for a long distance call to a number outside your calling area, similar to existing, traditional wireline telephone service. Other VoIP providers permit you to call anywhere at a flat rate for a fixed number of minutes.     back to top If I have VoIP service, who can I call? Depending upon your service, you might be limited only to other subscribers to the service, or you may be able to call anyone who has a telephone number - including local, long distance, mobile, and international numbers. If you are calling someone who has a regular analog phone, that person does not need any special equipment to talk to you. Some VoIP services may allow you to speak with more than one person at a time.       What Are Some Advantages of VoIP? Some VoIP services offer features and services that are not available with a traditional phone, or are available but only for an additional fee. You may also be able to avoid paying for both a broadband connection and a traditional telephone line.       What Are Some disadvantages of VoIP? If you're considering replacing your traditional telephone service with VoIP, there are some possible differences: Some VoIP services don't work during power outages and the service provider may not offer backup power. Not all VoIP services connect directly to emergency services through 9-1-1. For additional information, see voip911.gov. VoIP providers may or may not offer directory assistance/white page listings.       Can I use my Computer While I talk on the Phone? In most cases, yes.     back to top Can I Take My Phone Adapter with me When I Travel? Some VoIP service providers offer services that can be used wherever a high speed Internet connection available. Using a VoIP service from a new location may impact your ability to connect directly to emergency services through 9-1-1. For additional information, see voip911.gov.       Does my Computer Have to be Turned on? Only if your service requires you to make calls using your computer. All VoIP services require your broadband Internet connection to be active.       How Do I Know If I have a VoIP phone Call? If you have a special VoIP phone or a regular telephone connected to a VoIP adapter, the phone will ring like a traditional telephone. If your VoIP service requires you to make calls using your computer, the software supplied by your service provider will alert you when you have an incoming call.     back to top Does the FCC Regulate VoIP? In June 2005 the FCC imposed 911 obligations on providers of “interconnected” VoIP services – VoIP services that allow users generally to make calls to and receive calls from the regular telephone network. You should know, however, that 911 calls using VoIP are handled differently than 911 calls using your regular telephone service. Please see our consumer fact sheet on VoIP and 911 services at voip911.gov for complete information on these differences. In addition, the FCC requires interconnected VoIP providers to comply with the Communications Assistance for Law Enforcement Act of 1994 (CALEA) and to contribute to the Universal Service Fund, which supports communications services in high-cost areas and for income-eligible telephone subscribers. Aspects of these considerations may change with new developments in internet technology. You should always check with the VoIP service provider you choose to confirm any advantages and limitations to their service.     More info on USA VoIP

VoIP (or Internet telephony which is almost the same thing) is any one of several technologies that allow you to make phone calls over the Internet instead of over the telephone network. Some more advanced and secure systems use a private data network instead of the Internet. This technology has been around since the 1970s but hasn't been practical until recently because for it to be effective you need a broadband/high-speed connection. Specifically you need a bit more than 100kbps per connection using modern VoIP transmission technologies. This has only recently become common among residential broadband subscribers. That kind of bandwidth has been available in businesses for longer and the technology is already well established in the business market – but even there the necessary broadband has only been commonly available for three or four years.

In addition, improvements in standards, protocols and underlying hardware and software have also made the required broadband speeds more feasible and have reduced costs to where the decision to move to VoIP is more about the timing and the implementation for a business rather than if it should switch or not.

Typically any VoIP system – residential on up – offers slightly lower operating costs (contrary to advertising claims the cost savings are small) but offers a big step forward in available features and functions. For example, it is now perfectly feasible and cost effective for a 20 person small business to run a call center of its own and to have one system manage main and branch offices and even remote and telecommuting workers.

How it works

There are several protocols and methods for VoIP calls – the commonest standards are termed SIP and H.323 – but they all have some basic features in common. To the user phone calls are made and handled in the same way as they always have been except that VoIP phones often have more features available from menus and buttons than regular phones. When a call is dialed, the system takes the phone number, connects over the local network to whatever system is providing service. That system figures out if the call needs to go into the regular phone network and if so switches it to a gateway that connects the call over the regular phone network. If the call can be completed without going over the regular phone network (the number dialed is also a VoIP system) then the provider system will route the call directly, performing protocol translation (to a different kind of VoIP) if needed.

When traveling on the network, VoIP calls are treated like any other network data – they are broken down into little pieces of digital information (packets) and sent by whatever route the network determines to be fastest. That means different pieces arrive and different times and out of order and then are reassembled back into the proper sequence at the destination. This is why the 100+ kbps transmission rate is needed – so that the signal can be sent and reassembled quickly enough so that human users on both ends don't notice any delay.

It is also one of the weaknesses of VoIP – if the network goes down or has performance issues, so will your VoIP calls.

Levels of VoIP Service

The phone services and methods for providing them differ for different groups. Residential or home phone services have always been pretty straightforward. But businesses need PBXs for switching, handing extensions and for managing multiple users and numbers over a smaller number of lines in order to be cost effective. VoIP is no different. Residential VoIP services are straightforward but they do offer a range of features not common on regular phone systems.

Small businesses typically want more lines, a level of robustness not found in residential phone services and a predictable pricing structure. Quality of service becomes an issue. Not surprisingly, a different set of vendors is typically able to satisfy these needs than the best choices in the residential arena.

Scaling up again, medium businesses – in the 200 employee and up range – have a different focus for their concerns. Quality of service is more key, new features come into play including call center features like automatic transfer and queuing. Pricing becomes more critical again and in-house options begin to look attractive now that capital costs can be amortized across so many employees.

Large enterprises are clearly at the point where it is economically more sensible to bring equipment and services in house. Precise features become more critical as the need to integrate processes becomes critical to business success.

At every level of these services there is considerable overlap, so a small business provider is likely to be able to satisfy the needs of many medium-sized businesses. But stretch too far and everything breaks...

The bottom line when looking for VoIP service and when finding a good fit for a service provider is to do a little due diligence. Define your absolute requirements as well as the requirements that would be very positive. Define the deal-breaker issues. Go out and find the best fits and look at the intangibles and make a decision.

But here are the basics.

Residential. You should get a flat rate with free long distance. It should include all necessary equipment. It should cost less than your current service. It should include voicemail with access from anywhere. It should include advanced features like caller ID, callback, etc. It should NOT interfere with your other broadband-based services (Internet access, etc.)

Small-business. You should either get a direct dial number or an extension for everyone. Cost of operation should be lower than your current system. Setup and maintenance should be simple via a web interface or from the phones themselves. Conference calls should be straightforward. You should have full caller ID and identification on missed calls.

Medium-business. You should get a full feature system that matched what you previously would expect from a multi-national large enterprise phone system (really). You should get full call menu and voicemail tree systems. You should get the ability to include remote workers and branch offices in the company phone system. It should be no more expensive than your current system.

Large enterprise. The world is your oyster – you want a system that you can integrate into your corporate network, that can be built into your business and IT applications, that can smooth the way forward for your business in all kinds of directions.

Pricing

Price is where everything gets serious. Many first-time VoIP buyers are seduced by promises of big savings over their existing telephone system. But apart from basic residential service there are no longer huge savings as regular telephone companies have cut long distance rates to remain competitive. There are still savings, but they aren't as large as some providers may try to lead you to believe. Nevertheless, that's no reason not to be cost-conscious. Look at three basic cost areas – even for residential service. What the startup cost will be in terms of equipment, other first-time fees and services to get up and running. Look at monthly (or whatever period you prefer) operating costs ongoing, and look at termination costs if any – costs to end a contract, etc. All of these are factors.

For residential service you can pay as little as $17 per month or as much as about $40 depending on where you can call for free, included features, etc. Most services are in the $20 to $25 per month range for a single line with unlimited free long distance throughout the US.

Small businesses can pay as little as $50 per line per month from hosted plans to as high as $200 per month, again depending on services, features and other issues. If you choose to buy equipment and operate with a lower operating cost per month from a provider but a higher capital outlay you can expect to shell out from about $1000 to $5000 in equipment costs for from five to ten or so people plus a monthly operating charge of from $100 per month total to as much as $1000 per month. The price range is higher here but so are the range of options and features on offer.

Medium and large businesses move into total capital costs expressed typically as a cost per line of between $300 and $1000 and operating costs in the several thousands per month. But if the number of lines is large, that can still translate to a very low cost per line.

Conclusion

There are three clear messages to be learned and remembered as you start up any VoIP service at any level. First – it isn't about saving money – it's about added value, features and services. Second – you CAN find a VoIP provider that will meet and exceed your needs and expectations. Third – buyer beware – you need to look at the details. Compare plans over three to five years with expected growth scenarios. Look at the costs to drop a poorly performing plan as well as the startup costs. And expect more from your telephony system than ever before.

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